Company spokesman Ben Porritt issued the following statement to financial reporting outlets: “As we explored a public offering, a number of alternative financing sources became available that allow us to keep the company private and meet our growth strategies.”
A source tells Bloomberg News that Virgin’s initial public offering was expected to price below the $17 to $19 per share range originally envisioned in Virgin’s Security and Exchange Commission prospectus. The outlet reports that Chicago-based investor Josef Schuster says, “It’s a great concept, but I think it’s going to be difficult for shareholders at the outset to make money on this deal.”
Reuters quotes another investment advisor at Patriarch Partners LLC Eric Schiffer, “Had they come lower on pricing, it would have hurt the investors, so they decided to hold for awhile, grow, and then come back again. But it will come back for sure,” he says.
Keeping Virgin’s venture private during upcoming West Palm Beach-Orlando International Airport track and right-of-way construction relieves company exposure to second-guessing by stockholders who prefer immediate financial returns over long-term investment strategies.
Another industry observer tells Trains News Wire that contributions from individuals willing to assume the risk and keep any rewards for themselves would provide more stable financing than what a gyrating stock market delivers.
Good choice.Too many hands in the cookie jar will deplete the cookies faster.
Mister Pins:
I will neither confirm nor deny that I have anything to do with this development.
The above comments are general in nature and do not form the basis for an attorney/client relationship. They do not constitute legal advice. I am not your attorney. Find your own damn lawyer.
Anna Harding – Is this your doing? I remember what you said.